From Ken Berger of CBS Sports:
Give Donnie Walsh credit: He hasn't been baited by a desperate counterpart.
Walsh knows what I’ve told you for months, that the Nuggets essentially are negotiating with one team. Walsh is not budging in his refusal to gut his roster to acquire a player he can simply sign as a free agent after the season. And despite some hysterical calculations from amateur capologists everywhere, sources say it’s inconceivable that the Knicks wouldn’t have enough room for free-agent Melo regardless of how the collective bargaining agreement turns out.
[...] In many ways, it would be more advantageous to Anthony and the Knicks to unite via free agency. For one, Walsh wouldn’t have to give up any pieces of a young nucleus that has shown promise at times this season. For another, a max free-agent deal that presumably will start a few million shy of the $18.5 million Anthony is on the books for next season would help the Knicks add to the roster over the next two years.
The one thing I’d be worried about if the Knicks stand firm on its stance is if another teams tries to acquire ‘Melo in the 11th hour on the cheap without being guaranteed he signs an extension with that team and the Nuggets make that trade to spite the Knicks. A longshot, yes, but with the way things have gone you just never know. In that case, the Knicks would have to hope ‘Melo decides not to sign an extension with that team and instead sign with the Knicks as a free agent. It goes back to whether ‘Melo is willing to risk millions in the new CBA.